question archive Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $96,800 has an estimated residual value of $2,900 and an estimated useful life of four years
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $96,800 has an estimated residual value of $2,900 and an estimated useful life of four years
Subject:AccountingPrice:2.86 Bought8
Double-Declining-Balance Depreciation
A building acquired at the beginning of the year at a cost of $96,800 has an estimated residual value of $2,900 and an estimated useful life of four years. Determine the following.
a.The double-declining-balance ratefill in the blank 1
%b.The double-declining-balance depreciation for the first year$fill in the blank 2
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Double-Declining-Balance Depreciation Straight-line depreciation rate = (100% / Useful life) Straight-line depreciation rate = (100% / 4 years) Straight-line depreciation rate = 25% Double-declining-balance rate = (2 x Straight-line depreciation rate) Double-declining-balance rate = (2 x 25%) Double-declining-balance rate = 50% First Year Beginning Book Value = $96,800 Depreciation Expense = (Double-declining balance rate × Beginning book value) Depreciation Expense = (50% × $$96,800) Depreciation Expense = $48,400
